12 Cheapest Stocks with Biggest Upside Potential

2. PDD Holdings Inc. (NASDAQ:PDD)

Upside Potential: 48.38%

Forward P/E Ratio as of January 15: 7.61

Stock Price as of January 15: $98.13

Number of Hedge Fund Investors: 78

PDD Holdings Inc. (NASDAQ:PDD) is the parent company of Pinduoduo, a Chinese e-commerce platform known for its unique group-buying model. The platform connects consumers with manufacturers, offering competitive prices on a wide range of products, including groceries, electronics, and clothing. PDD serves both urban and rural consumers in China, leveraging social commerce and interactive shopping features. The company has also ventured into global markets through its subsidiary Temu, focusing on affordable e-commerce solutions.

PDD Holdings Inc. (NASDAQ:PDD), commonly known as Pinduoduo, is a leading e-commerce platform in China that has gained significant traction for its innovative group buying and social commerce models. The company has rapidly grown to become one of the largest e-commerce platforms in the country, known for its focus on offering high-quality products at competitive prices.

PDD Holdings Inc. (NASDAQ:PDD) has intensified its efforts to build a robust and healthy platform ecosystem. One of the key initiatives is the $1.36 billion fee reduction program, which includes measures such as service fee refunds, reduced fees for buy now pay later services, lower security deposits, and an easier fund withdrawal process. These measures have significantly reduced operating costs for merchants, particularly those in agricultural and national goods sectors, allowing them to allocate more resources to product development and technology upgrades.

PDD Holdings Inc. (NASDAQ:PDD) is expanding its offerings to include new smartphones, top-brand cosmetics, and healthy food for users in first- and second-tier cities. This move aims to address the personalized demands of urban professionals and younger generations. For consumers in third- and fourth-tier cities and rural areas, PDD Holdings Inc. (NASDAQ:PDD) is focusing on offering more premium home appliances, maternity and baby products, and fresh produce, driving a wave of consumption upgrades.